tv The Willis Report FOX Business March 8, 2013 6:00pm-7:00pm EST
everything rather than leave it behind. >> you hear this, people will go to garage sales and it will buy something for like $3 and then you find out it's worth $3 million. >> this is like a scene in toy story where woody gets thrown into the pile of junk. i agree with you, monica. you have to praise all of those things. they are not just junk. dennis: i am not as good at wrapping up everything on time as melissa is great but i'm going to bail on you guys and get to the next one. >> okay, we will have time to go to a garage sale be one to cap off a week, tom sullivan has a few words and warnings. >> the stock market has ben bernanke to thank for it. even though the economy is still struggling. ben bernanke is an academic, which means he doesn't have real world experience, but his theory is you will send your money over to the stock market where you
might be roughly 0% and then if you see a high stock market, he says he will feel better about the economy. from the gains from your stocks, it will drive the economy even higher. the only problem is that consumer spending power, it hasn't worked. there is a huge disconnect between the stock market and the economy. as long as the fed keeps artificially driving higher, investors will be happier. this will be just another bubble. dennis: be sure to watch the tom sullivan show this weekend. you can catch it at 7:00 p.m. and 10:00 p.m. on saturday and sunday at 7:00 a.m. and
7:00 p.m. happy friday, everyone. thank you for being with us. gerri: welcome to "the willis report." rand paul's turn with the gop. will the establishment stand with him or abandonment? and college students barely knowing how to read. that is the case with one city's public school system. in miami fashion week. we will have the glitz and glamour right here on the show tonight.
gerri: the deli is facing accusations tonight that it improperly uses your money, customer money to pay for operating expenses. fidelity has been accused of investing float income, my next guest says participants a right to be angry. check parks, welcome back to the show. you think this could be true.
>> you might see that this is in fact true. the department of labor as you mentioned, very cared until you clear guidelines about what an employer must do to get the money out of their hands and into the hands of the employees retirement trust. they use the term as soon as practical, which means that there should not be any delays in transferring money from the corporation to the employees accounts. dennis: last year the judge ruled against fidelity because they breached a fiduciary trust and fidelity was fined over $1 million for this. this seems to be almost commonplace. is this just business as usual in the industry? >> it is to a certain degree. 401k disclosure is something that we have talked about in the past year and is something that has also come to light last
year. transparency of 401k is supposed to be making its way through the industry. dennis: they are always taking a little bit of our money and putting it in their own pocket. >> that is right. you have mentioned the word judiciary, i brought with me to 100-dollar bills and you are in charge of making sure that you have made the right decisions. if you choose this over the 100, you have broken your responsibility. gerri: you're supposed to do the best you can for your clients at all times. we believe that the practices
are consistent with the law and fair to all parties and we provide valuable services to 401k clients for whom fidelity services is a recordkeeper and trustee. they didn't have another show tonight. i really appreciate your time. here is a boost for your 401k today. the dow jones putting up with a sixth straight day. bringing the index to yet another all-time high. traders are rallying under the unemployment rate, dropping down a little. my next guest is here with us, and he has some interesting research out. i want to start with today's jobs numbers. you say that they may not be all they could be.
this is not what we were expecting. >> this was the blowout report. it gets pushed to the upside in the report. but we knew that the data would be seasonally pushed out. the anybody can do this at home, you dislocate year-over-year growth rates of the.data. what you find is the payroll jobs growth has fallen today do not blow. >> the direction of jobs growth is very clearly, that it's very
different from the headlines come almost every commentator today, things are getting better. gerri: i have an interesting number that i hurt heard for the first time yesterday. jobs created so far. the same period last year, $582,000. you would think that we would have a growth rate. >> it is down to an 18 month low, which tells us that things are not what they saw seeman headlines. gerri: let me ask you this. a lot of people say the economy is on a tear. they look at these jobs numbers and they see fourth-quarter gdp and they are saying that this is a great economy. things are turning around. why are you so down in the
dumps. >> we studied this in cycles and it looks like this has been going on for about a half year. all those data points that you have talked about is anybody earning a paycheck understand that. >> in terms of income, you see that it's not all that it's cracked up to be. >> it is from a very low base. impact on the overall economy is a fraction of this gdp. maybe what the sequester might have taken away. when you take a look at what else is there. gerri: not everybody is on the bandwagon. a lot of people are much more circumstantial. they say that we are barely riding the edge, maybe 2% is
what we're going to get. you stay at that level, it is easy to to to the other side? >> just like you said, you always hear people say we were out of 2% economy. year-over-year, 1% growth rate. quarter for was flat. i mean, you know you can get a smaller revision mathematically. we are seeing gdp growth weights are consistent with their session when you look at nominal gdp, we've never seen the growth rate down where it is now outside of a recession. the fed's own gdi recession measure last year started to flash recession signals. gerri: you have been saying this since last july. >> it is relatively mild.
>> would you take those numbers and don't look at headlines come and do the math yourself, real gdp, 1.6%, rarely seen outside recession. nominal gdp, it's never been seen in the last 65 years and those are the facts. >> i think that what is happening is we have recessions and recoveries. but i think what is going on is why that's so hard to expect what we are saying? >> it took a year for people to
realize that we were in a recession. a lot of economists respect the great economist, the one that led the national bureau of economic research nine months in spite of a recession. gerri: i think your analysis is fascinating. there's a lot of people out there who believe that what has gone on in this economy is in some cases, many ceos are saying that this is a bump and i'm going to get for a while. so i will take advantage of it. >> a lot of ceos agree with us. a lot of people were out of work agree with us. i think the federal reserve agrees with us. gerri: thank you for coming on. fascinating and now says not something you hear everyday. back to this day in business history, back in 1817, 24 stockbrokers created what we
know as the new york stock exchange. the very first listed company was the big bank bank of new york are the marketplace to rapidly arbitrating a million shares a day until the stock market crash of 1929. ultimately, the dow jones recovered and then with more than 2000 listings in the combined market capital. 196 years ago the big board was founded. we are just getting started, including california park officials have been hiding funds on purpose. and regarding high school graduates, you have to hear this. our education system is failing our kids coming up next.
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gerri: sometimes there is one number that describes everything you need to know about a topic. we have one of those today, and it has to do with education. if you want to understand the state of education in this country, with the defense. nearly 80% of new york city high school graduates have trouble with basic skills like reading and writing and math. the vast majority don't have the basic skills you would expect of a half their age. the shocking news was reported by a lot untried local cbs affiliate today, saying that 11,000 kids have graduated from the city's high school and needed remedial courses to relearn the basics before entering new york's community college system. this is a just a poor kids issue. the chancellor appeared on our program and she said that underperformance can be seen in kids of all background, the
poorest kids in america ranked 26 out of 30 developed nations and math compared to their peers. that is a trend that you have heard about before. in fact, they also ranked 26. schools are not confined to ghettos, they played every neighborhood. a report by the georgetown university center on education and workforce on the u.s. economy will create nearly 47 million new replacement jobs in the next five years. more than half of those will require some college education. we are not producing enough educated workers to fill those positions. you can watch out for more jobs going to china and india and we don't want that. when it comes to education it could not be higher stakes. mayor michael bloomberg is planning on putting education high on his list when he leaves the office later this year.
gerri: tens of millions of dollars supposedly missing from california's budget. park volunteers raised thousands of dollars to keep california parks open. even though the money was there the whole time. claudia cowan has the details. reporter: california's state parks department is in damage control mode. even if the state was moving to close 70 state parks and volunteers were scraping together donations to keep them open. at first it was thought to be an embarrassing mistake, but an investigation says park officials deliberately stashed millions for more than 13 years.
>> they get very protective when they think of it as their own. in a culture that they have, it determines their behavior and in this case, it was the wrong behavior. >> people who have been so good to us, they feel really betrayed. >> $350,000 were insured by this couple to keep their beloved park opened. all of their major donors had dried up and while the 70 parks slated for closure are open for now, volunteers worry that the same generosity will be there when the urgent call for help goes out next time. >> what we have to do is turn around to our stakeholders and our constituents and say, watch what we do. watch what we put in place. learn from the trust that we try to put in place for you.
>> regular statewide audits and new leadership at the top. reporter: for the former park administrator who resigned in a hurry last summer may not be off the hook. the attorney general's office has launched an investigation that could result in criminal charges. gerri: thank you, claudia. up next, should the publisher and stay with rand paul? and one of the biggest names in music has his own legislation keeping the paparazzi at bay in hawaii. our panel weighs in coming up next.
hour filibuster marathon getting praise and from libertarians but against established republicans like john mccain and lindsey graham. we have former president george to be bush advisor. this is heavy-duty he takes a much criticism. >> is mr. poole was to be taken seriously, he needs to do more than full political stunts to fire up pressure of libertarian kids of the college dorm. gerri: come on. this is a surprising ran paul would object to the use of drums by the government. is this a serious political
statement or stunt? >> i think he's a comparable we're so used to politicians and not for the state's people to stand up and now is there to mavericks' in washington? [laughter] gerri: there is a conflagration between the rotarians and old-fashioned republicans, a country club republicans loggerhead can they come together? >> we need to to win but senator paul also has yet to crisis. republican not there is no two-party committed don't run as individuals, a new centralized leadership, so they played the card of republican. gerri: comeeon. here is what john mccain said to the huffington post. he called them what go
birds. >> but there should not have been 80 party response issued a just and republican gerri: but these groups are urging disparate. >> did not that different if they were they would run under their own brand, they don't do that. we have to be united and cannot be sniping at each other. so fighting amongst ourselves hurts our ability. gerri: let me ask you this. the issue of the drums and the government using drowns on americans, how long did it take democrats to say this is our issue?
because it was proposed by this administration they were reluctant to criticize. is george to be bush would be an issue much earlier. >> no question. the president could have instructed the attorney general to put out a statement this is not acceptable under the constitution. he manufactures a crisis then let them play out. gerri: it is fascinating the way this is caught fire. but grand ball motivates younger voters that the party ignores, shouldn't they put that to use? couldn't they. the party further? >> no question. we need to. that we need them in our party because libertarian
candidates on their own don't win coming in sir fourth. gerri: thank you for your time. have a great weekend. hear this story. he may not be on american idol but steven tyler has legislation for him. dubbed a the steven tyler at making its way through hawaii state legislature to not take unwanted pictures of celebrities. is it legal? lease wheel, is it? >> not all. there are already laws on the books about invasion of privacy, and using an image for profit and the first
amendment. if i am in the public only celebrities get their own law? what about the rest of us? >> what does god have to say? is this just ridiculous and not go into effect? >> from the city of brotherly love with love the statute. we should go down to hawaii and name it restorer insanity act why shouldn't celebrities enjoy the same privileges? >> they are celebrities. >> not open places like a park where before oscars but
why can't he opened up presents on christmas morning? >> here are the unintended consequences. what is a celebrity? i can see it now. m i a celebrity or not? gerri: what is the metric? >> colada. gerri: answer the question. >> it is much easier than they may get out. if the current law was working, we would not need this but the press or the proper r.o.t.c. would not leave the celebrities alone
in a private place. >> so we have to have on a lot just for steven tyler? gerri: they say it is a magnet for celebrities wingate intrude into private space in this regard safety across as a serious wine. be clear the proper r.o.t.c. have done despicable things the last few years. >> talked-about kate middleton, princess diana, just in the bird they are relentless. when you're by yourself why shouldn't they? >> there are already laws on the books you do not need the steven tyler act. it is crazy it could go on and on.
[laughter] >> i am not buying it that the laws currently detour the paparazzi. gerri: then would why any other law be enforced? >> because this is very targeted to put them on notice you cannot invade a private home. >> you just made my point* it is targeted to celebrities? what about us. >> the opera see are not interested in the rest of us >> here is the what is going on they will give special privileges to the rich and wealthy to bring them their
due spend the money and set up a household. >> that makes sense i cannot say there is not that a goal but celebrities are different and need a different law. >> there is a good question. with lindsey lower than qualify? she had a fall from grace. >> ask charlie sheen. [laughter] thank you for coming. on critically important story to move its civilization. [laughter] should we spend taxpayer dollars to protect celebrates? go to gerriwillis.com.
at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. gerri: the cost of electricity has fallen dramatically but you wouldn't know it by looking at your bill.
so why are you paying more? part of the reason is the system is outdated and and and and we are spending is not spent wisely and it poses a huge security risk. professor of with a chuckle and computer engineering at the university of minnesota makes him a super expert. how can it be we spend more and get less? with a 20th-century for lighting and refrigeration now we need to bring the infrastructure to support the digital network economy. gerri: the demands for energy are so much higher to support the 20th century, we're not there anymore. we are spending 43% more to build but not getting the
bang for the buck. why isn't it working? >> the depreciation curve cost over 1985. the price of electricity has increased from $0.7 from kilowatt error -- our up at $0.12. then readjust for capital investment and changes fuel cost so the 20% showoff electricity 20% for nuclear, 2.7% from the hydro dam. the cost of fuel plays a factor than the concerns of
the aging infrastructure. gerri: inseams the grid is less stable and more expensive and vulnerable to outside sources? >> it is vulnerable to open phenomenon, earthquakes, ice storms as well as several security. but it is preventing from cascading the phenomenon. they work very hard to keep the lights on. the threat has changed we used to have if between four and seven major storms for outages now between 70 and 120 events per year so the
portfolio of risk has increased over 20 years. gerri: what about threats from the outside? what about china? >> all of the security and research and development after 9/11 and then in 2001 we would see 80,000 hits on a particular control center trying to probe what doors are opened electronically to penetrate the system. the number has increased. the eyes of a classified reports before the executive order of cyber security
infrastructure. in the cyber threat will persist but to have in place there is a protection and security but each is like swiss cheese. the idea of layered defense to make sure they cannot get to the critical assets. gerri: they give for being with us. swiss cheese. i do not feel good about that. the latest craze in the country and miami kickoff fashion week and we will kick off. ♪ ogin...
important to start miami fashion week? >> we auntie international merchandise mart 17 years ago in the owner of 22 recreated fashion image and i said what about fashion week. gerri: now 15 years later later, what do you know, for? >> emerging talent from around the world we bring to the united states. they are stars in their country could not here yet we introduce them. gerri: what is new to the 13? >> we have new elements, a program to bring buyers from all over the world, and more countries, more designers, china, africa, a lot of latin america as well.
they love the woman's body. gerri: emerging designers is your big thing. is of more than once a year? >> we still with them all year we have an organization do not educate and promote education within the market and what they need to know to do business in this country. gerri: cities promote this because of the economic impact. do know that? >> $50 million over the nine days. gerri: that's impressive who is she was modeling? >> gillian chang was from a then do military stretch jersey retailing $250. gerri: net looks like miami. who we have carly next.
[laughter] >> she is wearing a dress dress, said double layer sheer mass and the high cut skirt with said detachable skirt. $2,500 civic this is a different price point*. gerri: this is in a fancy pants. tell us. >> one of the stars of miami as well as french sequin and embroidered and it retails it is an amazing piece of art. >> we should point* that out your a former model.
>> over 20 years in 38 countries by retired and started my own fashion production company. gerri: i'm sure people will want to go there to see the show. gerri: the lady in red was from our staff. for people "in fashion" it to be hard to meet someone special. the latest ranking is the best airport hook up. philadelphia basidia of brotherly love lives up to its name define love because of the large size member for is boston he keeps people stranded for hours newark, new jersey.
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comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp.
if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! gerri: well, the hawaii state senate hs passed the steven tyler act, a bill protecting celebrities from overeager paparazzi creating a civil violation if people take unwanted photos or videos of stars in their private moments. here's what you're posting on my facebook page. renee says: no, let them bear the expense of their own fame. scott agrees: no, they have enough money to protect